efficiency and reform half year: 2013/14

Efficiency and ReformHalf Year: 2013/14

Thursday 7 November 2013

Agenda08:30 Welcome

Katharine Davidson, Director of Strategy, Efficiency and Reform Group

08:35 H1 SavingsRt Hon. Francis Maude MP, Minister for the Cabinet Office and Paymaster General

08:45 UK GrowthSajid Javid MP, Financial Secretary to the Treasury

08:55 Financials and Forward LookStephen Kelly, Chief Operating Officer, UK Government

09:10 Q&A PanelRt Hon. Francis Maude MP, Minister for the Cabinet Office and Paymaster General

Stephen Kelly, Chief Operating Officer, UK Government

Bill Crothers, Chief Procurement Officer, UK Government

Katharine Davidson, Director of Strategy, Efficiency and Reform Group

Mike Bracken, Director, Government Digital Service

Efficiency and Reform H1 Progress Report 7 November 20132 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings2 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings2 Efficiency and Reform H1 Progress Report 7 November 2013#GovSavings

Rt. Hon. Francis Maude MPMinister for the Cabinet Office

and Paymaster General

Fiscal consolidation is underway but we must do more to balance the books

4 Efficiency and Reform H1 Progress Report 7 November 2013

Source: Office for Budget Responsibility: Economic and Fiscal Outlook March 2013

197

198

198

198

198

198

199

199

199

199

199

200

200

200

200

200

201

201

201

201

30%

35%

40%

45%

50%

Public Sector Cash Receipts

Total Man-aged Expendi-ture

OBR Forecast

% o

f GD

P

4 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings4 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings4 Efficiency and Reform H1 Progress Report 7 November 2013#GovSavings

Note: Figures may not sum due to roundingSource: QDS 2012/13 Full Year Expenditure, 2012 Budget Data, 2012/3 Full Year OSCAR Mgt Accounts, OBR Economic and Fiscal Outlook 2013


100% = £673bn

Our initiatives focus on the £93bn spent on pay, pensions and procurement in central Government. We also work to reduce benefit fraud and error

5439

209300

73

Pay and Pensions

Procurement

Welfare and State Pension PaymentsPayment to

Other Bodies

£ Billions (Including central Government, & military pay & pensions administrated by central Government)

(Within central Government administration control)

Financial Payments Accounting and

Adjustments

5 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings5 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings5 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings#GovSavings

In 2012/13 we saved £10 billion and prevented £6.5 billion in losses through our Fraud, Error and Debt programme

2010/11 Actuals

2011/12 Actuals

2012/13 Actuals

2012/13 Fraud, Error

and Debt

2012/13 Total

0

2

4

6

8

10

12

14

16

£bn

Efficiency and Reform H1 Progress Report 7 November 2013

1.7

10

3.75

3.4

1.1

10

6.5

16.51.7

Note: Saving figures compared to 2009/10 baselineSource: ERG Performance and Planning Team

5.5


Today, we are announcing first half savings of £5.4bn – a year on year increase of 73%

2012/13 2013/140

2

4

6

8

10

12

14

16

18

3.1

10

H1FY

Savi

ngs £

bn

5.4

Note: Saving figures compared to 2009/10 baseline. Figure at H1 2013/14 is unaudited. Stretch target includes savings arising from reductions in Fraud, Error and Debt (FED) Source: ERG Performance and Planning Team

Stretch Target

£15bn+(incl FED)

12.5Forecast Savings(excl FED)


We are transforming public services, making them easier to use and cheaper to operate...

Efficiency and Reform H1 Progress Report 7 November 20138 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings8 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings8 Efficiency and Reform H1 Progress Report 7 November 2013#GovSavings

...and creating joint ventures with our suppliers


Shared Services Connected Limited

75% Share 25% Share



To achieve £20bn in efficiency savings by the end of 2014/15 we are reforming public services

Restructure Civil Service

Major Projects

DigitalCrown Commercial Service


Sajid Javid MPFinancial Secretary to the

Treasury


We have published contract pipelines of £169 billion to make it easier for suppliers to work with public bodies

Property and facilities management £4.5bn Professional

Services£5bn

Information and Communication Technologies £5.7bn

Financial Services £12.1bn

Probation and Offenders Services£2.6bn

Energy and utilities £9bn

Vehicles£2.1bn

Clinical and medical life sciences£7.9bn

Welfare to Work £4.8bn

Office solutions £2.6bn

Construction£109bn

12 Efficiency and Reform H1 Progress Report 7 November 2013Follow us on twitter #GovSavings12 Efficiency and Reform H1 Progress Report 7 November 2013#GovSavings


We are supporting UK innovation by working with SMEs



Rationalising our property holdings will save money, support the construction industry, and create jobs


Stephen KellyChief Operating Officer,

UK Government

Savings have been achieved by exercising spending controls, buying more efficiently and reducing the Civil Service workforce


Source: ERG Performance and Planning TeamNote: Saving figures compared to 2009/10 baseline . Totals are not directly comparable to 2012/13 figures because of changes to savings categories

Transformation Projects Commercial Workforce Total H1 Saving0

1

2

3

4

5

6

0.60.7

1.8

2.3

Savi

ngs

£bn

5.4



By the end of 2013/14 we will have launched another joint venture for shared services...

100% = £5.4bn

0.6

TransformationH1 2013/14 Savings

By the end of 2013/14 we will have...

1 A live Independent Shared Service Centre 2

2 Launched an Identity Assurance service with HMRC and DVLA

3 Exited 260,000 SqM of Government property



...have worked with departments to assure projects with a total whole life cost of over £350bn...

100% = £5.4bn

0.7

ProjectsH1 2013/14 Savings


1 Undertaken 180 assurance activities on major projects

2 Delivered at least £700m of savings by reducing construction costs

3 50 graduates from the Major Projects Leadership Academy



...established a Crown Commercial Service...

100% = £5.4bn

1.8

CommercialH1 2013/14 Savings


1 DfT and DWP spend transitioned into the new CCS

2 Saved at least £1bn through better commercial practices



...and reduced the size of the Civil Service by 84,000 FTE

100% = £5.4bn

2.3

Workforce and PensionsH1 2013/14 Savings


1 Saved £2.3bn by increasing employee pension contributions

2 Reduced the Civil Service by 84,000 people since 2010


You are invited to attend three follow up ‘Deep Dive’ sessions:


Date Session

4th December Business Models

8th January Crown Commercial Service

5th February Fraud, Error and Debt


Our mission is to....


• Deliver better public services at lower costs

• Save £20bn a year by March 2015

Support UK business and growth

1

2

3


Q&A Panel Members


Rt Hon. Francis Maude MPMinister for the Cabinet Office and Paymaster General

Stephen KellyChief Operating Officer, UK Government

Bill CrothersChief Procurement Officer, UK Government

Katharine DavidsonDirector of Strategy, Efficiency and Reform Group

Mike BrackenDirector, Efficiency and Reform Group


efficiency and reform half year: 2013/14

Documents

reform h1 progress report

h1 savingsrt

reform groupmike bracken

cabinet office

year expenditure

year increase

reformhalf year

chief operating officer